The Capital Development Authority (CDA) recently concluded a four-day auction that aimed to generate significant revenue for the civic authority. However, the CDA’s Four-Day Auction results fell short of expectations, with the CDA managing to generate Rs 12.9 billion against its target of Rs 20 billion.
This article will explore the details of the CDA’s Four-Day Auction and the reasons behind the revenue shortfall.
Diverse Plots Auctioned
During the four-day auction, the CDA put up various plots for sale. These plots included nine commercial, two residential, and 14 half-marla plots (each measuring 150 square feet) designated for fruit, vegetable, and meat shops. Interestingly, the half-marla plots proved to be particularly attractive to investors.
Read more: Small Plots in CDA Auction Fetch Rs 50 Million Each
Notable Auction Results
The last day of the auction witnessed some remarkable sales, including the auction of two 150-square-foot plots in F-8/4 for Rs43 million and Rs45 million, respectively. In the G-11/4 sector, three plots were auctioned for Rs19 million and Rs20 million. Additionally, two residential plots in F-10/2, each measuring 555 square yards, were sold for Rs133 million and Rs255 million. The most significant sale was a commercial plot in Blue Area, measuring 611 square yards, which was auctioned for a substantial Rs1.03 billion.
Previous Auction Success
The CDA has a history of conducting successful auctions. Earlier in the year, they managed to fetch a whopping Rs41 billion through the auction of 42 plots in January. In August, another mega auction was held, selling 42 plots and generating Rs40.9 billion. In a July auction, the civic agency earned Rs3.8 billion from selling plots on Capital Street. These successes raised expectations for the recent auction, with the CDA initially anticipating Rs20 billion in revenue.
Despite falling short of its revenue target, the CDA reported that the overall response from investors remained satisfactory. An official of the CDA mentioned that technical reasons prevented the inclusion of two mega hotel plots worth billions of rupees in this particular auction. However, they plan to present a five-star hotel plot for auction in the coming months, hoping to generate significant revenue.
The CDA’s Four-Day Auction Funding Challenges
As an autonomous body, the CDA relies on its own funding to cover development and non-development expenditures. With approximately 15,000 employees and many pension cases, the CDA faces monthly utility service costs of millions of rupees. The success of these auctions is critical to the CDA’s ability to fund its operations and continue its development projects.
Read more: Investors Show Strong Interest in CDA’s Open Auction of Plots in Islamabad
Final Words
While the recent auction may not have met the lofty Rs20 billion target, the CDA remains optimistic about its future auctions and the revenue it can generate to support its ongoing efforts in the capital city.
